we don't risk u.s. default. on our obligations. because we can't put politics aside the politics sure haven't stopped washington from flirting with a deadline so with more failed debt talks over the weekend what will really happen if the u.s. does default. and friends with benefits as corporate leaders come up to politicians today at the chamber of commerce jobs summit why is the good jobs still so hard to find. from tanks to grenades exactly who are you was the police serving and protecting with stockpiles of military hardware. that didn't like what was their.

business over here and heard it but the mainstream media sure thinks she does so what's with the royal flush when the prince visited the real poppers the news starts now. well the big question the million dollar question is the united states three weeks away from financial collapse well we don't know but that's what some argue the u.s. is getting closer to with its failure to raise the country's fourteen point three trillion dollars debt ceiling now despite another week of failed debt talks between lawmakers president obama had a press conference today and he is still pushing for a big long term solution here's what he said. i'm happy to consider all options alternatives but they're looking at the things that i will not consider are

a thirty day or a sixty day or a ninety day four hundred eighty day. temporary stopgap resolution to this problem is the united states of america and you know we don't manage our affairs here in three months a. year we don't risk u.s. default. on our obligations. because we can't put politics aside this coming from officials who haven't been able to put politics aside in missing past deadlines and who are trying to agree on all of this a big plan to tackle the deficit just three weeks before default international investors such as the chinese and ratings agencies we've already seen them concerned obama and many other lawmakers say washington needs to raise the debt ceiling period but what happens if it doesn't well peter schiff president of euro pacific capital joins us now you can help us try to make sense of all this peter

now you for one we've talked about this before you are one argues for lower lower corporate taxes in this country that's something we've seen republicans want in this negotiation over the scope of it and also you have said that the government has to rein in its deficit such as something that both democrats and republicans seem to want on this deal so my question for you is would you risk the u.s. defaulting on its debt an order to achieve some of these principles first of all i think this is a ruse the fact that we're talking about the vote at all really proves that default is inevitable if. the only question is what forbes and default rate and when does it happen but you know it president was really concerned about the fall of congress was concerned about the oil what they would be saying is don't worry there is no way we will stop making payments on our debt we will cut everything else first we'll cut social security will cut medicare we will try. by interest payments and principal payments on the national debt if they said that then the thought would be a risk they only want to use the specter of the fall so that they can have

a justification for raising the debt ceiling the reality is the best thing that we can do for this country is not raise the debt ceiling and maybe of congress votes down the debt ceiling increase the stock market might sell off just like the ways sold off when the congress originally rejected the tarp but that was the right thing to do and often times the markets make the wrong move in a knee jerk reaction but if you really are concerned about deficit spending which i am the only way to stop it is to stop it dead in its tracks so these are just excuses that the government is making and and first of all we have precedence for the full week of all that and i seventy one you know if you own a u.s. treasury bond in nineteen seventy for every thirty five dollars you had the united states government promised to give you one ounce of gold and then you defaulted on that promise we told our creditors we're not going to give you any gold for your treasures and it was a catastrophic result that was a nine hundred seventy it was

a runaway a stagflation the price of oil went up ten fold because we defaulted on that promise well here's my question to you now what would happen if we did default because people really don't know what would happen in this situation in this current economy and where the united states relies on people to buy u.s. treasuries here's i want to play a little bit of what the president said at the effect of the american people possibly today at a press conference i prefer that first if you said to the american people is it a good idea for the united states not to pay its bills and potentially create a nother recession. millions of more people out of work i feel pretty confident i can get a majority on my side on that one and that's the first. if we don't raise the debt ceiling and we see a crisis of confidence in the markets. and suddenly interest rates are going up

significantly and everybody is paying higher interest rates on their car loans on their mortgages on their credit cards and that's sucking up a whole bunch of additional money out of the pockets of american people i promise you they won't like that so another recession interest rates going higher across the board for americans are these consequences that you see being a consequences of the fall if the united states doesn't reach an agreement to raise the debt ceiling the worry we're going to another recession regardless here i think we're still in the depression but. default is not an automatic consequence of not raising the debt ceiling the government is collecting over two trillion dollars a year in taxes i think the interest payments on the national debt are actually three hundred billion a year much of the exact number but we have roughly ten times the money we need so if the only way we will default on our obligations right now we might do it eventually but the only way we're default on them in august is if congress and the president choose to do that because there is plenty of money and you know it's the

state because president obama obama is making right now that's what spreading our congress because he is telling bondholders that they are the low man on the totem pole you know why would they because ok ok i hear you're saying how is he if he's saying that you know that everybody's saying that the debt ceiling has to be raised the u.s. cannot to fall isn't that because aiming to reassure markets is not reassuring anybody he is telling our creditors the minute we cannot borrow any more money we will stop paying back the money we've already borrowed you see the debt ceiling is about the self-imposed borrowing limit but what happens when our creditors impose a lending limit what happens when china says i don't want to lend you any more money then what we already told them what happened then we're going to fall then we're not going to pay back any of the money that you've already loaned us we are saying to the whole world this is a gigantic ponzi scheme what the president should be saying what. congress should be saying is we will honor our desks don't worry at all there is no chance of

default we will make cars in other spending but that's not what we're saying we are telling our creditors that people who get so security checks are more important than people who buy u.s. treasuries are they are they are americans who rely on social security more important to america than bondholders their investors and us of course they are and they're more important to politicians because foreigners don't vote that's why they should not be saying that this is very dangerous for the president to admit how weak the position is for our foreign creditors that we will cast them aside the minute paying interest on the debt conflicts was making so security payments when we when the with the dollar was backed by gold when we promised to pay gold people knew they would always get value for their feathers because they were going to pay them in gold but when we defaulted in the one nine hundred seventy one they don't promise to pay anything of value so the only thing that gives treasuries value is the belief that we are going to have a sound monetary policy but basically what the president said just the minute we

got a problem we're not going to get any money or just a great debt of inflation and you're not going to get the purchasing power i want you want to bring in a little bit of the global situation as we see it today because today we see a demand for the dollar we see the dollar rising and they concerned over the euro zone now fresh concerns over a sovereign debt crisis in italy you see treasuries have very low levels below three percent showing that people you know are willing to not get a lot of return on investment in order to hold u.s. treasury so just kind of the news in the euro zone and the bad news coming out of the euro zone is not good news for u.s. lawmakers who are delayed dialing over the debt ceiling about what they want a versatile it's not the dollar that's rising it's the euro that is slowing and so it looks like the dollar is rising and so you look at the price of gold which is of strongly they hit a record high in terms of your rose it's almost better. in terms of dollars i think it will be a record high shortly so yes right now the euro has some people look less ugly than

the dollar that's not how it looks to me but you're right we are getting some more rope that we can hang ourselves with because the world is now focusing more on the problems in europe and ignoring the greater problems in the united states what about going back to the gold standard what you're saying earlier about that that's what parliament is one that later this year is expected to talk about creating a gold franc writing a possibility that switzerland that was actually one the law so that in a gold standard could take a test that towards returning to it how would that affect the united states and this with economy but it would be good for switzerland i mean switzerland has probably the strongest terms of the world right now and arguably one of the best economies in the world low unemployment strong or stronger so i think they can do to strengthen their currency will strengthen their economy and i think that would be a step in the right direction and i think you can see all around the world there is a movement to return to real money and i myself i have a bank to buy that i started offshore bank of europe as

a big bank and i'm very close to launching the world's first ever go back credit card visa card that my depositors could use to access their bill bullion and i think this is a trend that is going to continue as people lose confidence in currencies and want to save in real money and transact in real money what have the impact on the united states. well i think anything to diminish is the appeal of the dollar is going to impact the united states which remember our economy in america right now is based on printing money it cost us nothing and using it to buy all the resources and all the goods that the rest of the world produces at great cost and so anything that shines a light on the fact that we're just counterfeiting money and anything that looks more appealing than the dollar and the shoes our ability to pull off a scam and really quickly just to go back to what we talked about the beginning of a conversation i just want to get an answer because you said you don't that the united states wouldn't actually to fall if it doesn't raise the debt ceiling that

there are options for the u.s. to pay the people that it owes so in a situation where the united states doesn't raise the debt ceiling do you think that what is happening is to pay credit or is the and feel the pain at home i mean what is the scenario you would actually look over really my advice for the u.s. is going to be the same that i'm given for you know a greece right now or ireland for that matter oh we can't pay for let's just think knowledge you see what's going to happen eventually is us interest rates are going to rise they're not going to be zero forever they're going to rise sharply just like they're rising right now and italy just like they rose in greece and ireland and when interest rates go up we cannot pay it doesn't matter whether we raise the debt so we can write we can eliminate the debt ceiling nobody is going to want to lend to us and we're not going to afford it because the interest payments are going to be so hard so eventually in order to avoid massive inflation we're going to have to restructure the debt we're going to have to caught up back on what we pay in principal interest and yes i think that's better it imposing massive austerity on

the american economy so we can pay off our foreign creditors kind of our foreign creditors well to really deserve to lose money because they're stupid enough to buy all these treasuries and and the government is using all that money to undermine the u.s. economy and would you accept that correction happening on august second if the united states didn't raise its debt ceiling with all of the talk that the u.s. is going to have to follow would you accept that scenario. but it congress really dug in their heels and said we are not going to have any more debt and we're going to restructure. or we're going to allow the economy to restructure we're going to cut government spending dramatically so that we can say yes i would love to see that happen i mean that's that's not what i'm betting on i want a lot of gold because i don't think that's going to happen i don't think there's any chance that politicians will do the right thing that's why my money is on the fact that they will do the wrong thing which is raise the debt ceiling and keep on borrowing and printing money until we collapse that all right we're going to leave it at that thank you so much peter schiff as always

a pleasure he is the president of euro pacific capital and all of the debt discussion or theatrical depending on how you read it on capitol hill what is happening to the talk of jobs we cannot forget friday's june jobs report which showed unemployment is only getting worse well jobs discussion is happening but you can decide if it sounds like it will help needing today about jobs is the chairman of the president's council on jobs and competitiveness who is also c.e.o. of g.e. jeff immelt now he's also known for heading that company g.e. that now famously paid no taxes last year and that has shed u.s. jobs all out even overseas now this is out the chamber of commerce which mind you is one of the largest business lobbies in washington and included our other politicians are there i spoke with labor journalist mike and i first asked him what interested these folks have in job creation. to keep us few workers employed as possible and keep the moral thing as much as possible and for as little as possible

that's their only and these people have no real desire for humans they see human capital is merely another commodity not something that they really see any social value so i mean they don't have much interest in job creation but the they need one of the long run if they want to sell their products but i think increasingly what you're seeing in the us is that a lot of companies feel that they don't have investment american english as a global markets are expanding well yet you have middle classes that are burgeoning in brazil in india they can buy you know washing machines or whatever g.e. products but come on this is him or he is the jobs are there don't you want to create jobs i mean the plan i mean i mean he has a plan but if i look at his plan for dean dusters ation in america you have to remember his mentor jack welch as the head of g.e. said you know i wish you could factories on a barge so that you can ship them anywhere around the world wherever leaders cheapest and you know just them all has continued in the tradition of the c c u g e ship twenty nine jobs overseas twenty nine plants since obama's taking office and thousands of jobs and thousands of jobs and on top of that he just got you know

huge wage cuts to workers at general electric as part of the union negotiations so i really don't think jim was a credible person and i wonder why the president is even working well let's switch gears and talk a little bit about then job creation and against relegation in this country we have seen a little bit of a rise in our manufacturing retail little bit of a rebound and i'm curious you know some of this job creation and some of these plants for example you see foreign companies foreign automakers coming over volkswagen they open a plant in tennessee last month two thousand workers were hired that's an example why do you think they opened their plant in tennessee versus say detroit where there's a trained workforce or on a maker's part of the reason they did it was the massive amounts of infrastructure investment that they gave there in tennessee i mean massive amounts of cleaning stimulus money so they don't open up which is which is really ironic since they're senator bob corker. advocate against the stimulus advocated for the sting this money that plan all right but what about right on so many that one of the right or

even if you know you know that why companies would go to a state like that at the close to somewhere like detroit it's nonunion but the interesting thing is that volkswagen has already signaled its willingness to the united auto workers to little need for you know action happening so there's a lot of interesting talk those wagners the only foreign automaker in this country that doesn't screen out members that were previously union members so that's why going in germany has always had a pro labor rights record and the last bill to implant was in america in greensburg pennsylvania this was in the eighty's my mother actually worked there was a union shop for a volkswagen has always been able to have a union shop so i don't think that's a puke part of the equation not just looks like i mean there are other automakers open plants in right to work state and opening in the south i feel like you see more of a trend there and there's also evidence that shows that you know job creation of employment rises more and right to work states so i want to i'm sure you're going to have something to say about that but i want to bring in what's going on with boeing and then you see the national labor relations board ruling essentially that

boeing cannot move its production from washington to south carolina where does that a new president you know this has been the question since the one nine hundred thirty s. i mean this is been for some for other things you thought this goes through in another interview that it would be groundbreaking it would be groundbreaking because i've been in force much so if this isn't course it would be groundbreaking it was never going to be forced by huge name brand corporation like boeing it's been forced against several other ones which is that companies cannot retaliate against workers for moving their production to other places because you were going one on one strike which is what happened to boeing case you know but we promised to move production in two thousand and seven two thousand and eight hrs went on strike two thousand and nine but we move production to south carolina and said in an interview to the seattle times that the reason they moved it was because they didn't want the deal for exceptions so if this isn't forced and if this is groundbreaking what would that mean for businesses in the united states would this be a hamper to. to economic growth and job growth well i think the biggest hampered economic growth for the answer my question not the biggest damper i want to know what impact

that ruling specifically would have on job growth and business growth in the united states because why wouldn't going say ok we'll forget doing business in the u.s. we'll just go overseas first boeing's contractually obligated to make a lot of its parts here so it's a good sign of a government contract but it's not all that all of us manufacturing isn't required to be here i mean if you look at the breakdown a lot of parts are going to factor here a lot of ingenuity already but a lot of them in a fashion that stay here you know i think you just can't enforce them going decision i think we have to have a serious and does require so that keeps these plants from moving overseas you know anybody who does business for the federal government which is what every company you know those parts should be made in the u.s. every other nation and germany france they all have these type of additional poses and look at germany they're running a trade surplus right now with china will run on a tree deficit and german workers make more than american workers make you know the average american auto worker makes good six dollars german auto worker makes forty eight dollars a lot interesting factors to consider that was labor journalist mike elk now why

have paramilitary swat rates increased more than a thousand percent over the last two decades the question we're trying to answer why have the department of defense given millions of military weapons and armor carriers to civilian police forces across the country well earlier i spoke with independent journalist ron your colleagues trying to get them answered she investigated it in a recent article i first asked her how the distinction between the civilian police corps and the military which was what separated by law has been eroded. well there's a there's a little bit of a distinction but basically what happened is the swat team kind of goes back to first when thought things were present that you did back in the sixty's. and initially swat teams were get reaction and so weightily deal with hijackings and and bank robberies and hostage situations where you needed sort of extreme force to come in and deal the situation and they were pretty popular throughout the seventy's because they weren't used very often but now there's like forty six percent of swat teams are actually are actually trained by active duty military

personnel and special operations so there's also the surplus the military surplus program that was a consolidated drop in his ninety's where you got a great man from the military that was no longer in use given to civilian law enforcement so it was some of the stuff is like death tax and you know when i and things like that and there's also armored personnel vehicles and machine gun and logoff helicopters and some gave the so you have a situation where local law enforcement has long been trained by the military but it's also dressing up like the military it's weaponized like the military right the sort of you know the really good let me get an ironic as a because i want to have a bit more of a discussion about this one of the arguments for this kind of military as a shan is to protect police death and violence against police is something that you mention in your article so what is wrong with that that's the case and you seem to believe there is one well there's nothing wrong with wanting to protect police and

of course they should be protected however a lot of people trying to make the case that we need to militarize the police because silence against police got there's a kind of astronomically in this actually isn't the case in fact of violence violent crime in america gone down and got on a downward trend and on top of that the f.b.i. collects data and you will be interested in the uniform crime report about how many police officers actually been killed and assaulted and that number. a pretty constant is that she got a black jacket it's been around fifty police officers a year that have been killed enough i mean it's not good but at the same time that's not increasing but it is but that's been going on over the last decade and you argue that this military base and has been going on for longer than that the last several decades and along with the violent crime and can you make the case that it is this militarization that has decreased this violence against police and the violence overall well that's i mean that's not the case because again like again violent crime is fun down and violence against police has pretty bad been

pretty much constant. at the same time but not good because of the militarization and war was teams and what that actually well that's a good case to make but the fact is that swat teams in the position of police actually escalate violence rather than deescalate it which is apparently the idea of it because you have more heavily armed police. it likes watching raiding people homes all the time you know a lot of instances where people believe their homes are being broken into and somebody might be a gun owner might be about their gun and trying to protect them dull to not be to somebody getting killed usually that the person who's being righted so there is they're in there haven't been any correlation between the idea that no pride in the police force has led to the police being on being killed and in fact people end up getting killed in the process and what's really disturbing about this that most of all is that it's remember the police the civilian police and military soldiers have very different functions. the police officers that serve their communities are

there to maintain the safety and and peace in their communities and for the law but at the same gender supposed to uphold the rights of business as if i've got a bill of rights on the other hand a soldier in the military is an agent of war strange to eliminate their enemy so when you are giving this military mindset language and weapons that you know to civilian law enforcement you're essentially turning law enforcement into into a group of soldiers and you know the enemies are going to eliminate are going to be the american people and really what they go this is something that's been going on for a while we all know i just it one sentence ten seconds you're the police commissioner what do you do. well you know there's other ways to train police if you want situations and having them heavily armed but submachine guns and blackhawk helicopters is not the way to go about it all right we're going to be able to actually keep this discussion going so you say that there is a need that they're going to have to go a this and are going to have to train people differently and are going to have to kind of undo this but one of the things you mention is that whole industry has been

built up around these police agencies similar to the military industrial complex that we see on a federal level well at the local level you say that there is now all of this industry around it so i'm curious how much influence they have and what tactics that is for uses in perpetuating this paramilitary expansion of police forces right well so what you're talking about is the department of homeland security after the war on terror where they do think about what you just grants to a local police department every year and police officers are using i mean we've got guards or you can use grants to buy military not military equipment but policing equipment so yet as industry has sort of popped up. manufacturing has made it back first to make sure military gear didn't actually be advertised to book or police forces there's at least swat teams so so god becomes sort of this complex where now you've got this booming industry that has influence that you know is selling machine guns and tank like you know be a goals if you look at police departments. follow the money and get the answers i

was independent journalist ranya colic and sticking with in justice the british royal couple were in los angeles over the weekend and it was such a big deal for the u.s. mainstream media but look at this here's just one example it was so major that can we see this they broke in with live footage of their arrival during a very serious discussion on the jobs report and c.n.n.'s john king that's just one example you can see there captivating happening now pox of the royals driving in well arty's ramona lindo did his own duty showing us the so-cal for over kate's wardrobe among really important things and he also looked at the real impact of royalty on skid row were willing kate visited. the british newlyweds are definitely the talk of the town television news stations went all out to cover every single step you can search of cambridge while in los angeles the moment you step up

a plane and head down the red carpet late last night in los angeles the new duchess of cambridge has been wowing her style on the final day of the royal couple's visit the media descended on skid row where the neighborhoods homeless couldn't be less excited about what kate is wearing chata go back there you know and stay with their personal business or we're here in america ok perhaps excited is not the best way to describe this event carlos of area homeless veteran has discussed it with the media frenzy surrounding the royal newlyweds visiting this poverty stricken area reporting on the homeless and trying to do something for some of the royal spectators have traveled hundreds of miles for a chance. here on skid row now this is a neighborhood where many of these people would otherwise never set foot in what would you tell them if they came up here to the light and talked about. i would cry

a little bit and be very excited and then i would just tell them thank you for having to wrap up their trip the row couple visited with core children and unemployed veterans in one of los angeles's most desperate disadvantage areas but it's been the more parts of a willing visit has served as a distraction from all the hard to swallow stories like young going that ceiling talks the wars in afghanistan iraq and libya the foreclosure crisis and who can forget the salacious casey anthony trial i think the visit is another example of the corporate press the corporate media. essentially using the opportunity. for ratings and they're going to focus on the issues that they know going to generate ratings they know. fashion noise hymns and what is wearing. it's estimated more

than fifty thousand people are without a home or meal each night in los angeles county many of those are homeless veterans like carlos who have a tough time talking about the obvious attention on skid row but perhaps after the dust settles and will and kate say their goodbyes maybe the mainstream media and paparazzi will stick around to see the realities of life it was a fashion explosion kate middleton is a fashion magnet on second thought never mind in los angeles but i'm only in the party that's going to go for now for more on the stories we covered at r.t. dot com slash usa or youtube dot com slash r t america you can also follow me on twitter at lauren lyster please do and please tune in eight we will have a fresh report on the mideast quartet meetings going on in washington guiding the israeli palestinian peace talks you won't want to miss it thank you for watching and take care.